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The original 1987 arcade version of World Derby used a touchpad drawing tablet. It used positional sensor technology developed by Sega. The same technology was later used for game development, to draw sprites for games such as Golden Axe II (Game) (1991), and was the basis for the Sega Pico (Platform) console.
The History of Sega Console Hardware: Hideki Sato – 1998 Developer Interview